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May 5, 2011 Henkel to sell its stake in Indian HPC joint venture
Henkel to sell its majority stake in Henkel India Ltd to Jyothy Laboratories Ltd
Düsseldorf, Germany – Henkel AG & Co. KGaA, Düsseldorf, today announced the
sale of its 50.97% stake in Henkel India Ltd, Chennai, India, to Jyothy Laboratories
Ltd., Mumbai, India. In an all-cash transaction Henkel sells 59.4 million equity shares
at 20 INR each, amounting to 1,187 million INR (approx. 18 million euros) and 68
million preference shares, amounting to 439 million INR (approx. 7 million euros).
Henkel will generate a one-time gain of more than 30 million euros. Jyothy
Laboratories had acquired a 14.9% stake in Henkel India Ltd from Tamilnadu
Petroproducts Ltd, Chennai, India, in March 2011.
Henkel’s sale of its majority stake in Henkel India Ltd is in line with the company’s
strategy to focus on its core businesses and phase out marginal positions. Henkel’s
local Indian brands have lacked size in order to be able to effectively compete with its
competitors in the challenging Indian market. However, Henkel will still be present in
the Indian HPC market with its international brands Fa and Pril which will be licensed
to Jyothy, and with the Schwarzkopf Professional hair care business.
Henkel India Ltd was founded in 1987 as a joint venture between Henkel and
Tamilnadu Petroproducts Ltd. The company operates in detergents and cosmetics
retail businesses and employs around 400 people. In 2010, sales of Henkel India Ltd
amounted to 4,217 million INR (approx. 70 million euros).
Henkel AG & Co. KGaA, Investor Relations Page 2/2
The sale will trigger the mandatory 20% open offer to the public shareholders of
Henkel India Ltd as per Indian SEBI regulations. The transaction is expected to be
closed by the end of May. About Henkel: Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Henkel employs about 48,000 people and reported sales of 15,092 million euros and adjusted operating profit of 1,862 million euros in fiscal 2010. Henkel’s preferred shares are listed in the German stock index DAX and the company ranks among the Fortune Global 500. About Jyothy Laboratories Limited: Jyothy Laboratories Ltd, a fast moving consumer goods Company, was founded in 1983 by Mr. M P Ramachandran. Over the years the company has evolved from a single product proprietary firm into a multi brand company involved in the manufacturing and marketing of products in Fabric Care, Mosquito Repellent, Surface Cleaning & Personal Care. The company has 28 manufacturing facilities in 16 locations across India. Contact: Oliver Luckenbach Constance Spitzer Christian Wietfeld
+49-2 11-7 97 16 31 +49-2 11-7 97 89 33 +49-2 11-7 97 36 09
Fax: +49-2 11-7 98 28 63 Fax: +49-2 11-7 98 28 63 Fax: +49-2 11-7 98 28 63
[email protected] [email protected] [email protected]
Stefan de Diego Andrea Haschke Ines Göldner
+49 2 11-7 97 15 10 +49-2 11-7 97 21 66 +49-2 11-7 97 39 37
Fax: +49-2 11-7 98 28 63 Fax: +49-2 11-7 98 28 63 Fax: +49-2 11-7 98 28 63 [email protected] [email protected] [email protected]
